Intu says net rental income will fall in 2019
Intu Properties CEO warns year will be challenging due to a higher than expected level of company voluntary arrangements and slowdown in new lettings
Intu Properties, which was formed when real estate group Liberty International was split in 2010, says its like-for-like net rental income in 2019 will fall by up to 6% amid a turbulent period for UK landlords. British property owners are grappling with company voluntary arrangement (CVA) processes, whereby financially distressed businesses renegotiate their leases or shut outlets, placing added pressure on rentals. Major retailers are seeking CVA processes as they contend with a surge in online shopping and Brexit uncertainties. Debenhams, for instance, said last week it would close 22 of its 166 stores. “We expect the remainder of 2019 to be challenging due to a higher than expected level of CVAs and a slowdown in new lettings as tenants delay their decisions due the uncertainties in the current political and retail environments,” said Matthew Roberts, who took over as Intu CEO at the end of April. “Despite the current operating environment, I believe we have a very good business ...
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